Lucent, CCT in alliance
Telecom equippers team to provide optical networking solutions in Asia
May 08, 2000: 8:42 a.m. ET
HONG KONG (Reuters) - CCT Telecom Holdings Ltd. and U.S. telecommunication equipment maker Lucent Technologies Inc. said Monday they were forming an alliance to provide optical networking solutions to customers in China and Hong Kong.
The alliance was expected to produce "several hundred million U.S. dollars" in additional sales for the two companies over the next three years, they said in a statement.
The alliance would focus on applications relating to Lucent's expertise in product areas such as optical networking and related network integration.
Hong Kong-based telecom equipment maker and Internet portal operator CCT Telecom will contribute its experience as an integrator and operator of data and telecommunication networks.
"I believe our coalition with CCT Telecom will offer both Lucent and CCT Telecom the opportunity to be more successful by dove-tailing our strengths -- which as a result will make our customers more successful," said Harry Bosco, president of Lucent's Optical Networking Group.
Lucent (LU: Research, Estimates) stock closed Friday at 58-5/8, down 1-5/8. Shares in CCT were down 5 Hong Kong cents, or 2.44 percent, at HK$2.00 in Monday morning trade.
Separately, CCT Telecom chairman Clement Mak said the company would team up with a major European mobile operator for a third generation (3G) mobile telephone license in Hong Kong.
"We will be partnering with one of Europe's largest mobile operators for the 3G license," Mak said. He gave no further details.
Hong Kong telecommunication authorities have not decided whether to auction or give away the licenses later this year.
Mak also said the company would not rule out listing its HKNet Holdings Ltd. Internet arm on the Nasdaq after a proposed listing on Hong Kong's Growth Enterprise Market (GEM).
"We will not rule out a listing on the Nasdaq after the proposed GEM listing," he told reporters.
CCT Telecom said last Friday it was seeking to spin off and list its HKNet Holdings, a wholly owned subsidiary, on the GEM.
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